For a Small Coffee Cafe, Which of the Following Is

question 88

Multiple Choice

For a small coffee cafe, which of the following is a nonvalue-adding activity?

• A) Importing coffee beans
• B) Purchasing ingredients
• C) Cleaning up
• D) Operating the drive-through window

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Definitions:

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.